Cloudflare (and Fastly) have to build out their network, so they do have hardware costs. You can’t compare them to pure SaaS like ZM, DDOG, etc when it comes to GM. In theory Fastly should spend less in the long run since they plan to build less PoPs.
Just to share some changes I made today to my portfolio as well, now that things are starting to settle a little (I think):
I also sold out of AYX (only 2.5% of port by today after selling a bunch before the drop, like many did here, and then the drop took me down to this final size) and shaved some off SHOP (dropped from 9% to 7% of port). Added to DDOG, FSLY, and NET. The new purchase proportions were like 60%, 25%, 15% of the cash spent (not % of port). I chose these proportions mostly based on degree of correction and rough value, BUT I may bring NET up like Saul did. I just want to understand a bit more about Workers and how it compares with, or lives along side, Fastly’s Compute@Edge. I don‘t like how NET advertised this zero-second cold-start when it doesn’t apply to most sites (I’m not even clear if this is CDN or edge computing related), for example, so I want to know some more about the tech that will compete for edge processing. Please don’t reply to this last point here though. Off topic for this thread.